Question 1

How does the technical view of organizations fall short of understanding the full impacts of information systems in a firm?
A) It sees information systems as a way to rearrange the inputs and outputs of the organization.
B) It sees capital and labor as primary production factors.
C) It sees an organization as a collection of rights, privileges, obligations, and responsibilities.
D) It sees the organization as a social structure similar to a machine.
E) It sees the inputs and outputs, labor and capital, as being infinitely malleable.

Accepted Answer

E

Question 2

________ technologies radically change the business landscape and environment.
A) Explosive
B) Inventive
C) Disruptive
D) Subversive
E) Divisive

Accepted Answer

Disruptive technologies are those that completely change the game for businesses and industries, often rendering older technologies, products, or services obsolete. They shift the way business is done and have a major impact on the entire marketplace. Examples of disruptive technologies include the internet, smartphones, and electric cars.

Question 3

When a firm buys on the marketplace what it cannot make itself, the costs incurred are referred to as
A) switching costs.
B) network costs.
C) procurement.
D) agency costs.
E) transaction costs.

Accepted Answer

The costs incurred when a firm buys on the marketplace are called transaction costs. These include costs related to search, negotiation, and monitoring of suppliers, as well as costs related to the risks of opportunism or information asymmetry. Switching costs refer to the costs of changing suppliers, network costs refer to the costs associated with maintaining a supply chain infrastructure, procurement refers to the process of purchasing goods or services, and agency costs refer to the costs of ensuring that agents act in the best interests of the principal.

Question 4

Some organizations lack bedrock, unassailable assumptions that define their goals and products.

Accepted Answer

The answer of Some organizations lack bedrock, unassailable assumptions that...

Question 5

All of the following are considered disruptive technologies except
A) instant messaging.
B) e-mail.
C) Internet telephony.
D) PCs.
E) smartphones.

Accepted Answer

The answer of All of the following are considered disruptive...

Question 6

How are the technical and behavioral definitions of an organization different?

Accepted Answer

The answer of How are the technical and behavioral definitions...

Question 7

Business processes are collections of
A) informal practices and behaviors.
B) formalized and documented practices.
C) business rules.
D) rights and privileges.
E) routines.

Accepted Answer

The answer of Business processes are collections of
A) informal practices...

Question 8

A professional bureaucracy is a knowledge-based organization where goods and services depend on the expertise and knowledge of professionals.

Accepted Answer

A professional bureaucracy is characterized by a high degree of specialization and a reliance on professional expertise to produce goods and services. This type of organization is typically staffed by highly trained and educated professionals who have a deep understanding of their field and who are able to use their knowledge to solve complex problems and make informed decisions. Common examples of professional bureaucracies include law firms, medical institutions, and research institutes.

Question 9

The divergent viewpoints about how resources, rewards, and punishments should be distributed, and the struggles resulting from these differences are known as
A) culture.
B) politics.
C) structure.
D) viewpoints.
E) variance.

Accepted Answer

The term "politics" refers to conflicts and struggles arising from divergent opinions on how resources, rewards, and punishments should be allocated within an organization or society. It encompasses the distribution of power and social status, which can be influenced by individual and group interests, values, and ideologies. Culture (A) refers to the shared beliefs, values, practices, and artifacts that shape the norms and behaviors of a social group. While culture can be a source of diversity and innovation, it can also create barriers to change and adaptation. Structure (C) refers to the arrangement of roles, responsibilities, and relationships that defines the formal and informal organization of a group or system. While structure can facilitate coordination and control, it can also create rigidity and bureaucracy. Viewpoints (D) and variance (E) are general terms that do not capture the specific nature and dynamics of political conflict.

Question 10

An organization is seen as a means by which primary production factors are transformed into outputs consumed by the environment according to the ________ definition of organizations.
A) microeconomic
B) macroeconomic
C) sociotechnical
D) behavioral
E) psychological

Accepted Answer

The microeconomic definition of organizations focuses on how inputs (primary production factors) are transformed into outputs (goods or services) that are consumed by the environment (marketplace). This approach emphasizes the economic perspective of organizations and how they contribute to the overall economy.

Question 11

Along with capital, ________ is the primary production input that the organization uses to create products and services.
A) structure
B) culture
C) politics
D) natural resources
E) labor

Accepted Answer

Labor refers to the employees or workforce of an organization, which is one of the primary production inputs used to create products and services. While structure, culture, politics, and natural resources may all impact an organization, they are not considered primary production inputs.

Question 12

An example of a divisionalized bureaucracy is a
A) startup firm.
B) university.
C) Fortune 500 firm.
D) midsize manufacturer.
E) consulting firm.

Accepted Answer

A divisionalized structure is created when a company breaks down into smaller, self-contained units that operate as their own entity. Fortune 500 firms are typically large enough to utilize this structure and have multiple divisions, each with their own functional areas and operations. Startups, midsize manufacturers, and consulting firms are generally too small to need or benefit from a divisionalized bureaucracy, and universities typically operate under a different organizational structure.

Question 13

Routines are also called standard operating procedures.

Accepted Answer

Routines are also known as standard operating procedures (SOPs) and are a set of step-by-step instructions that outline how to carry out a specific task or activity in a consistent and standardized manner.

Question 14

An organization is a
A) stable, formal social structure that takes resources from the environment and processes them to produce outputs.
B) formal, legal entity with internal rules and procedures that must abide by laws.
C) a collection of people and other social elements.
D) B and C
E) A, B, and C

Accepted Answer

An organization is a stable, formal social structure that takes resources from the environment and processes them to produce outputs, making it A. It is also a formal, legal entity with internal rules and procedures that must abide by laws, making it B. Finally, it is a collection of people and other social elements, making it C. Therefore, the correct choice(s) is E.

Question 15

Which of the following is not a major feature of organizations that impacts the use of information systems?
A) business processes
B) environments
C) goals
D) agency costs
E) leadership styles

Accepted Answer

While agency costs are a significant concept in organizational economics, they are not a major feature of organizations that directly impacts the use of information systems. In contrast, business processes, environments, goals, and leadership styles all play important roles in shaping how organizations implement and utilize information systems.

Question 16

Under Mintzberg's classification of organizational structure, the knowledge-based organization where goods and services depend on the expertise and knowledge of professionals falls under the category of
A) entrepreneurial structures.
B) divisionalized bureaucracies.
C) professional bureaucracies.
D) adhocracies.
E) machine bureaucracies.

Accepted Answer

According to Mintzberg's classification of organizational structure, a knowledge-based organization where goods and services depend on the expertise and knowledge of professionals falls under the category of professional bureaucracies. In this structure, the professionals have a high degree of autonomy and control over their work, and the organization is designed to support their specialized knowledge and skills. This is in contrast to machine bureaucracies, where work is highly standardized, and adhocracies, which are project-based and characterized by flexible, dynamic relationships. Entrepreneurial structures emphasize innovation and risk-taking, while divisionalized bureaucracies are structured around distinct business units.

Question 17

Mintzberg classifies a large bureaucracy existing in a slowly changing environment that produces standard products and is dominated by centralized management as a ________ bureaucracy.
A) machine
B) professional
C) divisionalized
D) multidivisional
E) ad hoc

Accepted Answer

Mintzberg's machine bureaucracy is characterized by standardized work processes, centralized decision-making, and a focus on efficiency and predictability. A large bureaucracy operating in a slowly changing environment that produces standard products and is dominated by centralized management fits this description.

Question 18

The interaction between information systems and organizations is influenced
A) primarily by the decision making of middle and senior managers.
B) by the development of new information technologies.
C) by many factors, including structure, politics, culture, and environment.
D) by two main microeconomic forces: capital and labor.
E) by management decisions.

Accepted Answer

The answer of The interaction between information systems and organizations...

Question 19

According to agency theory, the firm is viewed as a(n)
A) unified, profit-maximizing entity.
B) task force organization that must respond to rapidly changing environments.
C) entrepreneurial endeavor.
D) "nexus of contracts" among self-interested individuals.
E) entrepreneurial structure.

Accepted Answer

According to agency theory, the firm is viewed as a "nexus of contracts" among self-interested individuals, meaning that the individuals within the firm have their own goals and interests, which may not always align with those of the firm as a whole. This creates a situation in which the agents (employees) may act in their own self-interest rather than in the best interest of the principal (owners/shareholders).

Question 20

All of the following statements are true about information technology's impact on business firms except
A) it helps firms expand in size.
B) it helps firms lower the cost of market participation.
C) it helps reduce internal management costs.
D) it helps reduce transaction costs.
E) it helps reduce agency costs.

Accepted Answer

Information technology helps firms become more efficient and competitive, but it doesn't necessarily lead to expansion in size. Expansion is influenced by a variety of factors including market demand, strategic decisions, and financial resources. Technology primarily enhances operational efficiency and effectiveness.

Quiz 3: Information Systems, Organizations, and Strategy

How does the technical view of organizations fall short of understanding the full impacts of information systems in a firm?

________ technologies radically change the business landscape and environment.

When a firm buys on the marketplace what it cannot make itself, the costs incurred are referred to as

Some organizations lack bedrock, unassailable assumptions that define their goals and products.

All of the following are considered disruptive technologies except

How are the technical and behavioral definitions of an organization different?

Business processes are collections of

A professional bureaucracy is a knowledge-based organization where goods and services depend on the expertise and knowledge of professionals.

The divergent viewpoints about how resources, rewards, and punishments should be distributed, and the struggles resulting from these differences are known as

An organization is seen as a means by which primary production factors are transformed into outputs consumed by the environment according to the ________ definition of organizations.

Along with capital, ________ is the primary production input that the organization uses to create products and services.

An example of a divisionalized bureaucracy is a

Routines are also called standard operating procedures.

An organization is a

Which of the following is not a major feature of organizations that impacts the use of information systems?

Under Mintzberg's classification of organizational structure, the knowledge-based organization where goods and services depend on the expertise and knowledge of professionals falls under the category of

Mintzberg classifies a large bureaucracy existing in a slowly changing environment that produces standard products and is dominated by centralized management as a ________ bureaucracy.

The interaction between information systems and organizations is influenced

According to agency theory, the firm is viewed as a(n)

All of the following statements are true about information technology's impact on business firms except